Chapter Thirteen
Alternative Dispute Resolution
Alternative Dispute Resolution (ADR)
Alternative dispute resolution
involves resolving disputes outside
the normal court process.
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Upper Saddle River, NJ 07458. • All Rights Reserved.
Binding and Nonbinding ADR


Binding ADR exists where the parties have
agreed to give up their right to court and to be
bound by some method of ADR.
Nonbinding arbitration is frequently ordered by
a court in which a civil dispute has originated.
The courts hope that forcing the parties to go
through ADR will enable them to resolve the
dispute without a trial.
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© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Negotiation

Negotiation is the process of discussing
contested issues in an attempt to resolve
disputes.

It is a process that requires no formalities.

It can take place at any time.
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Hames and Ekern
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© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Arbitration



Arbitration is an out-of-court hearing before a
neutral party who listens to two or more
disputing parties and renders a decision
resolving the dispute.
An arbitrator presides over an arbitration
hearing and renders a decision.
The decision of the arbitrator in an arbitration
hearing is called an arbitration award.
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Hames and Ekern
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© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Mediation


Mediation is an informal out-of-court
dispute resolution process; a mediator, or
neutral person, assists the parties in
reaching an agreement
The mediator does not decide the
disputed issues, but rather tries to get the
parties to reach an agreement.
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Hames and Ekern
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© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Other Methods of ADR

Mini-Trial

Court-Related ADR

Private Judges

Special Masters

Discovery Referees
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Hames and Ekern
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© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.